"I always say that CFOs need to expand their visions for digital transformation’s strategy and business value. CFO’s role has evolved to become a strategic, business-oriented enabler, digital-aware and transformation-obsessed, but the global pandemic has added to the urgency."
- an excerpt from our VP of Finance Morris K.'s recent article, published on the Forbes Finance Council.
CFOs are now the stewards of new technology to unlock efficiencies and enhance agility. Modern CFOs understand the latest technologies and are ready to invest in them. They are not a naysayer of technology anymore. This helps businesses to become competitive and future-ready.
The smart CFO understands the importance of disruptive technology to lead the growth story of business, overcome hurdles, and serve stakeholders better. As technologies such as artificial intelligence, automation, IoT, blockchain, and machine learning are impacting business decisions, CFOs have learned to unlock their full potential.
Leadership teams depend on accurate and real-time information to champion critical business decisions. By prioritizing and leveraging technology, CFOs can streamline data that guide those decisions.
A modern CFO is a multitasker who leverages technology to manage people productively, nurture stakeholder relationships, and optimize processes. By embracing new business processes, CFOs eliminate the adage of “we have always done it that way.”
With more interdepartmental knowledge and intuitive problem-solving skills, today’s CFOs encourage teams to realize the potential of doing things in new ways, for business growth and longevity.
The core responsibility of the CFO is to manage the company’s capital, profits, and expenses. The CFO’s office also owns the statutory and regulatory requirements, audits, and other financial aspects. So, how does a modern CFO become strategic and encourage innovation?
A new-age CFO leverages technology to anticipate business outcomes, optimize resources, control costs, improve productivity, and plan the course of the business.
Today’s CFOs use innovative technology to overcome bottlenecks in cash flow, gain data insights, and keep the business funded. For example, a new-age CFO understands the importance of shifting from a manual accounts receivable process to an agile and automated process flow.
A modern-day CFO undoubtedly is at the heart of strategic and financial decision-making and resource planning. They understand the pain points of a business and continuously strive to change the status quo.
New-age CFOs no longer rely on historical financial reporting techniques for decision-making but use predictive models to drive growth. Modern CFOs also place a greater emphasis on non-financial KPIs, not limited to finance and accounting, to evaluate multiple aspects of the businesses. The role of the CFO today is more dynamic and not limited to financial reporting or planning. He or she actively participates in building the business strategy using analytical, risk management, and communication skills.
A CFO is adept at hitting the numbers and establishing processes to optimize operations, products, services, and stakeholders from a finance viewpoint. A high-performing CFO uses intuitive dashboards and key metrics to measure the company’s financial health, expenditure, cash flow, and resilience for unforeseen circumstances.
Digital intelligence helps CFOs track business operations metrics in real-time and engage with multiple teams to help them see the bigger picture. A modern CFO uses relevant business metrics to advise on and bring changes to workflows, perceptions, and business goals.
As businesses scale, the traditional CFOs will need to evolve into modern CFOs not only to manage funds but also to steer the business in the right direction. The five reasons we have given above is not an exhaustive list, but it will help kickstart the transformation journey towards a modern CFO.
The HighRadius RadiusOne AR Suite is a complete accounts receivable solution designed for mid-sized businesses and SMBs to automate eInvoicing, Collections, Cash Reconciliation, and Credit Risk Management to enable faster cash conversion and maximize working capital.
It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, MS Dynamics, and scales to meet the needs of your order-to-cash process.
Lightning-fast Remote Deployment | Minimal IT Dependency
Prepackaged Modules with Industry-Specific Best Practices.